FBR proposes new rules for import of vehicles

The Federal Board of Revenue (FBR) issued a draft amendment to Pakistan’s Customs Rules 2001, introducing significant changes to the temporary import rules for vehicles brought into the country by tourists.

The amendment allows tourists to keep their vehicles in Pakistan duty-free for up to three months, provided specific conditions are met, said an FBR notification issued here.

According to the FBR’s notification, tourists wishing to bring their vehicles into Pakistan must submit a declaration affirming that they will not transfer ownership of the vehicle while in the country.

In cases where the vehicle is not re-exported after the three-month period, the vehicle’s owner must provide an advance bank guarantee to customs authorities. The customs collector will be able to extend the stay of the vehicle by three months after receiving the guarantee.

For the same vehicles re-entering Pakistan, a limited temporary stay of only 14 days will be permitted, with an exception for vehicles operated by foreign tour agencies, which will be allowed a second three-month entry within a year.

The FBR has also introduced relaxation for unforeseen situations. In case of illness of an importer or the vehicle meeting an accident, the vehicle may remain in the country for up to six months. In this case, the tourist will be bound to furnish a fresh bank guarantee to the Customs collector.

Failure to provide the required bank guarantee will bind the tourist to surrender the vehicle to the Customs department. Additionally, importers will have the option to obtain a permit from the Ministry of Commerce by paying the applicable customs duty for an extended stay.

The FBR has invited recommendations and feedback from stakeholders on the proposed amendments, aimed at providing flexibility for tourists while ensuring proper regulatory oversight.